DETROIT -- Aside from blowing out a breathtaking number of cars and trucks, the GM Employee Discount for Everyone program has become an impromptu -- and successful -- experiment with no-haggle pricing.
By offering vehicles at 3 to 5 percent below dealer invoice, General Motors has imposed a ceiling on the transaction price. That's a good definition of no-haggle selling. As the ads explain, the price that GM employees pay is the price the public pays.
According to GM's internal research, the elimination of price negotiations is a big reason the public likes the program.
"When we put it together, we thought the main draw would be the employee discount," says Mark LaNeve GM North America's sales and marketing chief. "But a contributing factor is the simplicity of the one-price aspect."
Does GM's promotion portend a permanent shift to no-haggle pricing? LaNeve says that won't happen.
"We are definitely trying to push MSRPs lower and closer to transaction price," LaNeve says, "but we are not evaluating any kind of program that would encourage one-price selling. This is not a precursor to any broad move in this area."